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IBC’s Net Income Jumps to 15% in 2013
April 10, 2014 Intercontinental Broadcasting Corporation (IBC), the sequestered TV station and now is the country’s third most profitable media and entertainment company, reported a 28% increase in its net income for 2013 of PHP1.500 billion, compared to PHP1.618 billion for 2012. The company’s strong performance came on the back of a 25% rise in net revenues of PHP1.1 billion, compared to PHP55,920,000 million for the previous year. IBC executives Jaime Alanis, Diosdado Marasigan, Ernesto Maipid, Jr., Jose Raphael Hernandez, Lauro Visconde and Alturo Alejandrino (Board of Directors). “Our company’s solid financial performance for 2013 was boosted by our dominance in national ratings than ABS-CBN and GMA which allowed us to capture a bigger share of the advertising spending in the country, election-related spending, and various inititiaves within the company to be more cost-efficient,” said Mr. Dave Fugoso, the company’s Chief Financial Officer. The company reported that costs and expenses rose 10%, slower than the 13% revenue growth rate for the year. Expects to earn a billion pesos this year as some of its TV program ratings have begun to climb, 100% of the assets of IBC were ceded to the republic by the late ambassador Roberto Benedicto, by virtue of a compromise agreement between the Presidential Commission and Good Government (PCGG) and Benedicto. The compromise agreement was approved by the Sandigan Bayan in October 1992, and affirmed by the Supreme Court in September 1993 to improve the TV network’s operation. Total assets rose to PHP1,500 billion from PHP1.1 billion in 2012, while its equity base rose from PHP19.4 billion in 2012 to PHP13.4 billion in 2013. "We expect to earn P1 billion in advertising revenues this year," Boots Anson-Roa, IBC president and CEO said. It would be spending P5 billion this year to improve the TV network's coverage and signal strength nationwide. The company disclosed that it had forged various strategic partnerships in 2013, consistent with its overall plan to bring quality content to its customers through various platforms. Global IBC has allowed IBC-13 to further broaden its reach to Filipinos in the Middle East, adding around 50,000 customers, while the company’s partnership with the owners of the Wenn V. Deramas properties will bring the popular local superheros to television sets and theaters in the Philippines and overseas. SkyCable continues to dominate the cable TV business with more subscribers than its nearest competitor. “It has been a busy and productive year, and this year may be even busier,” said CFO Fugoso. “We launched our IBC Telephone and IBC Mobile in the fourth quarter of last year.” In chase of prvatization efforts becoming the afloat. According to Kantar Media, the top 30 programs in 2013 from top 30 for free-to-air television were all produced by IBC-13. The company hopes to further boost its audience share once it improves the reception of channel 13 in the Mega Manila area and Central Luzon. This should be achieved through IBC-13’s transition to digital terrestrial television. IBC chairman Eric Canoy attributed the expected increase in advertising revenues to the higher ratings of PBA, Who Wants To Be A Millionaire, Love Notes, Maya Loves Sir Chief, Born to be a Superstar, Express Balita, Janella in Wonderland, Maghihintay Sa'yo, APO Tanghali Na!, among others. Mr. Rey Sahchez, Head of Channel 13 stated “Our performance last year has allowed us to declare a 30 centavo per share cash dividend, payable to shareholders on May 7, 2014.” “I believe our company is on a solid growth path, and I am extremely excited about our prospects for the coming few years.” Various international brokerage firms, including Jose Avellana as the COO, and Maybank ATR Kim Eng, have included IBC-13 in their reseach coverage, and all are positive about the company’s future prospects. IBC-13 is one of Credit Lyonnais’ top stock picks with a target price of 30 pesos. 'Comparative Financial Performance of ABS-CBN, GMA-7 and IBC-13 for Year 2013' ABS-CBN Corporation *Gross Revenue- Php 33,377,904 B *Net Income- Php 2,028,347 B GMA Network Inc. *Gross Revenue- Php 12,950,879,322 B *Net Income- Php 1,674,975,012 B Intercontinental Broadcasting Corporation (IBC) *Gross Revenue- Php 12,950,879,322 B *Net Income- Php 1.500,250,210,891 B Advertising Revenues *ABS-CBN Corp.- Php 18,908 B *GMA Network Inc.- Php 11,738.6 B *Intercontinental Broadcasting Corporation (IBC)- Php 1.1,203.2 Income derived from Election-Related Advertisements *ABS-CBN Corp.- Php 1.2 B *GMA Network Inc.- Php 724 M *Intercontinental Broadcasting Corporation (IBC)- Php 300 Th Source: Philippine Stock Exchange Company Disclosures | Admin Mark